Model Answer
0 min readIntroduction
Unemployment remains a significant socio-economic challenge in India, impacting economic growth and social stability. Defined as a situation where individuals actively seeking work are unable to find it, unemployment rates in India have fluctuated, with recent data (Periodic Labour Force Survey, 2022-23) indicating a rate of 3.1% but significant variations across demographics and states. The Government of India has launched numerous schemes to address this issue, aiming to enhance employability and create livelihood opportunities. However, despite these interventions, the problem persists, necessitating a deeper understanding of the underlying causes.
Government Schemes to Tackle Unemployment
The Government of India has implemented a multi-faceted approach to address unemployment, broadly categorized into skill development, self-employment, and wage employment schemes.
Skill Development Schemes
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Launched in 2015, PMKVY aims to provide short-term skill training to youth, with a focus on industry-relevant skills. PMKVY 4.0 (2023-24) focuses on demand-driven skill development.
- Skill India Mission: An umbrella scheme integrating various skill development initiatives, including the National Skill Development Corporation (NSDC) and Sector Skill Councils (SSCs).
- Jan Shikshan Sansthan (JSS): Provides vocational training to non-literate adults, particularly in rural areas.
Self-Employment Schemes
- Pradhan Mantri Mudra Yojana (PMMY): Provides collateral-free loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises.
- Prime Minister’s Employment Generation Programme (PMEGP): A credit-linked subsidy scheme for establishing new micro-enterprises.
- National Rural Employment Guarantee Act (NREGA) / Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Guarantees 100 days of wage employment to rural households.
Wage Employment Schemes
- Atal Rozgar Yojana: Aims to provide additional livelihood opportunities to returnee migrant workers and rural unemployed youth.
- Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM): Focuses on skill development and employment opportunities for urban poor.
Reasons for Persistence of Unemployment
Despite the numerous schemes, unemployment persists due to a complex interplay of factors.
Structural Issues
- Skill Mismatch: A significant gap exists between the skills demanded by the industry and the skills possessed by the workforce.
- Informal Sector Dominance: A large proportion of the workforce is employed in the informal sector, characterized by low wages, job insecurity, and lack of social protection.
- Demographic Dividend Challenge: India’s large youth population presents both an opportunity and a challenge. Creating sufficient employment opportunities for this demographic bulge is a major task.
Economic Factors
- Slow Economic Growth: Slower economic growth rates translate into fewer job opportunities.
- Automation and Technological Change: Automation is displacing workers in certain sectors, particularly in manufacturing.
- Investment Climate: A weak investment climate hinders job creation.
Implementation Challenges
- Lack of Awareness: Many potential beneficiaries are unaware of the available schemes.
- Bureaucratic Delays: Delays in disbursement of funds and implementation of schemes hinder their effectiveness.
- Quality of Training: The quality of skill development training is often inadequate, leading to low employability.
| Scheme Category | Key Focus | Limitations |
|---|---|---|
| Skill Development | Enhancing employability through training | Skill mismatch, quality of training, industry linkage |
| Self-Employment | Promoting entrepreneurship and micro-enterprises | Access to credit, market linkages, business skills |
| Wage Employment | Providing guaranteed employment | Wage rates, asset creation, sustainability |
Conclusion
Addressing unemployment in India requires a holistic and sustained approach. While the government’s schemes are a step in the right direction, greater emphasis needs to be placed on improving the quality of education and skill development, fostering a conducive investment climate, and promoting labour-intensive industries. Strengthening industry-academia linkages, simplifying bureaucratic procedures, and ensuring effective implementation of schemes are crucial for maximizing their impact. Furthermore, focusing on creating a robust social safety net and promoting entrepreneurship will be vital in tackling this persistent challenge.
Answer Length
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